Q: Can I rent a house (to purchase later) and keep my primary residence as rental property and take advantage of prop 19?
I live in my current primary residence, now 22 years. I moved my folks into memory care. I want to purchase their home but can't do so now due to capital gain issues. My thought is to move into their home and rent from estate, but I fear I lose my PROP 19 benefits by doing so. And, by them moving into memory care, what happens to their primary residence? How do I best acquire while keeping tax basis low and minimize capital gains.
A:
It sounds like you need to discuss matters with an elder law attorney. You may need to set up a conservatorship of the property for your parents, if you do that consider creating a trust to own the house until it can pass to you on their deaths. You can rent from the Trust which is a separate entity.
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